CALGARY, ALBERTA--(Marketwired - March 20, 2014) - Essential Energy Services Ltd. (TSX:ESN) ("Essential" or the "Company") announced today that it has received approval from the Toronto Stock Exchange (the "TSX") to renew its normal course issuer bid ("NCIB") for Essential common shares ("Shares"). Any Share purchases by Essential pursuant to the NCIB will be for cancellation.
Under the NCIB, Essential may purchase up to 12,311,641 of its issued and outstanding Shares, representing 10 percent of the public float, on the open market through the facilities of the TSX and other alternative trading systems. Essential currently has 125,566,344 Shares issued and outstanding. As required by the TSX Company Manual, the maximum number of Shares that may be purchased on one day may not exceed 81,141 Shares, which is 25 percent of the six month average daily trading volume of Shares on the TSX, at February 28, 2014. The price which Essential will pay for any Shares purchased will be the prevailing market price of such Shares at the time of purchase.
The NCIB will commence on March 25, 2014, and will terminate on March 24, 2015, or at such earlier date as the NCIB is completed or terminated at the option of Essential.
During the preceding twelve month period, Essential purchased a total of 520,052 Shares under its previous NCIB through the TSX and other alternative trading systems. The weighted average price paid for the 520,052 Shares was $2.35 per Share.
Essential may enter into an Automatic Share Purchase Plan with a broker for the purpose of buying Shares through Essential's blackout periods. Such purchases would be determined by the broker in its sole discretion, based on parameters that are established by Essential prior to any blackout period. All other purchases under the NCIB will be at the discretion of Essential.
The Board of Directors of Essential believes that the Shares currently trade in a price range that does not adequately reflect the underlying value of Essential's assets and operations. As a result, Essential believes that the purchase of its outstanding Shares is an attractive investment for the Company.
Essential is a growth-oriented, dividend paying corporation that provides oilfield services to producers in western Canada for producing wells and new drilling activity. Essential operates the largest coil tubing well service fleet in Canada with 46 coil tubing rigs and a fleet of 55 service rigs. Essential also sells, rents and services downhole tools and equipment including the Tryton Multi-Stage Fracturing System (Tryton MSFS®). Further information can be found at www.essentialenergy.ca.
The TSX has neither approved nor disapproved the contents of this press release.